Nokia Financial Results for Q3, 2011

Yesterday Nokia announced the financial results for Q3, 2011. Though the company is not in the first position, there are areas Nokia showed unexpected results. Well, we all understand things will change by the end of the year, because the Finnish company will launch the first Windows Phone smartphones. However, what we have now is not so good as the analysts predicted.
In the period between July-September Nokia sold 16.8 million smartphones, which takes the company to the third position after Samsung (20 million) and Apple (17.07 million). This number is 34% less compared with the same period last year, but it is 1% more than the last quarter indicator. This can’t completely show Nokia’s losses, because the market is growing and Nokia’s still losing its market share.
Second, Nokia sold 89.8 million feature phones, which is 8% more compared with the last year and 25% more than last quarter. So even if Nokia’s not performing that good in the high-end smartphone market, it’s still a leader among low-end phones.
Nokia’s operating losses make up €71 million, but in some sense the company shouldn’t be unhappy with it especially if we compare it with last quarter’s indicator, which made up €487 million. The company’s operating profit makes up €252 million, which is less than what it had last quarter (€391 million). Net sales made up €8.98 billion, down 13% year-on-year and down 3% from Q2.
We have to mention all these indicators are based on the Average Sales Price (ASP), which was €131 for Q3, that is 8% less than last quarter and 2% less than last year. The feature phones’ AVS was €32, down 11% compared with Q2, and 20% compared with last year.
As you see Nokia must do its best to get back its fame. It’s already taken the right direction, so I believe Q4 results will be much better.

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